Low-cost carriers Frontier Airlines and Spirit Airlines have resumed talks for a potential merger, sources told the Wall Street Journal.
The two US carriers are struggling financially, with Spirit seeking to avoid filing for Chapter 11 bankruptcy.
The reconnection comes nearly three years after Frontier announced an agreement to acquire Spirit for $2.7 billion. In February 2022, the two companies planned to combine their businesses to create the 5th largest airline in the US.
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However, JetBlue aggressively entered the dispute and managed to defeat Frontier’s proposal, offering $3.8 billion for Spirit.
But the merger between JetBlue and Spirit was deemed harmful to competition in air travel by the courts in January. In March, the two carriers announced the end of the agreement.
According to the WSJ, the talks between the two companies are still in the early stages and may not materialize.
Frontier Airlines’ entry could involve restructuring Spirit’s debt amid a bankruptcy filing.
The two carriers have a combined fleet of 367 aircraft. Spirit operates 212 Airbus jets, while Frontier operates 155 A320-family aircraft.
